Hi, I have flat in Hyderabad and it is close to 8 years old. Builder absconded and the property don't have occupancy certificate (OC) for anyone. Went to municipal office couple of times requesting to visit the property and provide OC, but didn't work out. I purchased this flat by taking home loan from SBI. I closed the loan and got loan closure certificate from bank. I would like to sell my property. Could you please let me know what is the way to sell flat without OC ? If not, please guide me what is the procedure. Also, i need to sell this property for a loss w.r.t to my purchase price. Please guide me if it attracts any charges (including GST).
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1) you would not get market price for your flat but would have to sell at a discount
2) banks are reluctant to give loan for purchase of flat which does not have OC
3) since you are selling after period of 8 years you don’t have to pay any long term capital gains tax as it is being sold at loss
Sir, if the process of sale deed is complete by paying the requisite government fees and you have registered your name in the mutation documents, then you will surely be able to sale the flat.
If not then file a fraud case against the builder and when the police apprehends them you can also file a consumer case against them.
Sir I wish you all success in your difficult times and hope my reply helps you.
Thank you so much for the guidance. Another point i missed in my question: I didn't pay any tax till date (property tax / municipal tax) on my flat as municipality didn't generate any property tax number for any one in the apartment. Please guide me here how can i solve this puzzle to sell my flat.
Sir without going through documents it is very difficult to give any advice. But since you have replied me that you have not paid any tax (including stamp duty) with regard to the flat, then surely the process of sale deed is not completed. It means that the flat is not sold to you and it is still in the name of the builder.
If such is the case then you have to file fraud case against the builder.
Hope my reply helps you.
you will have to execute indemnity bond to indemnify purchaser in case any claims are made by municipal corporation for unpaid taxes
1.Yes, you can sell off the flat even in absence of OC as long as the buyer is willing to buy this .
2 Loses will have to be set off.
3 Property can be sold though the municipal taxes are in arrears.
Occupancy certificate authorises customers to stay in the property. It is issued by the metropolitan authorities after all other related supporting documents, stating that requirements such as building standards, fire and elevator safety norms, drainage and so on, are in place.
However since the building has been completed and occupied for more than 8 years, you may not get OC from the authorities at this stage.
It may not be necessary to obtain OC at this stage especially when you have already availed home loan from a bank and have even discharged the same.
Since you have already got electricity connections and water supply, the OC may not assume any importance at this stage.
You may sell the property without OC, there wont be any legal impediment in it.
Another point i missed in my question:
I didn't pay any tax till date (property tax / municipal tax) on my flat as municipality didn't generate any property tax number for any one in the apartment. Please guide me here how can i solve this puzzle to sell my flat.
Your builder should have approached the Municipal authorities for obtaining OC which would have facilitated the generation of property tax.
Even now you can approach the authorities for payment of tax and can even agree to pay the arrears of tax.
Why have you not taken interest in paying the taxes so far.
If need be you can even give an affidavit for this purpose explaining the circumstances why the assessment could not be made.